Morris Company has gross billings last year for $$11,720,000.$ The sales returns and allowances for the company were $$370,000.$ The sales discounts were much lower at $$175,000,$ and freight$-$out was $$140,000.$ Which of the following is true of net sales last year? $($Assume tax rate is $30\%)$

Select answer from the options below

Operating income included a prior period adjustment net of applicable taxes of $$1,050,000.$

Bad debt expense of $$685,000$ should be deducted from gross billings.

Net sales were $$11,175,000.$

The operating income net of applicable taxes was $$1,050,000.$